Who Needs Long-Term Care Insurance?

Long-term care insurance can help cover the costs if you have a chronic illness or disability and need help performing common daily activities, including bathing and moving around. Who needs long-term care insurance depends on the individual situation, but the cost of long-term care is an important consideration in deciding if you need this type of insurance to help protect you financially, should you need that type of care. The average cost of living at a nursing home is $6,844 a month, while bringing a health aide to your home five days a week costs an average of $3,553 a month.¹

Candidates for long-term care insurance

Medicare, Medicaid and other insurance plans may cover some of your long-term care costs. But you might be someone who needs a long-term care insurance policy if you’re currently in good health and meet at least one of the following:

• You aren’t sure whether you’ll have enough retirement savings to cover the cost of long-term care
• You want to help protect your retirement savings
• You haven’t planned for somebody close to you, such as a family member, to be a caregiver if required
• You don’t want to burden family members and others with the responsibility of caring for you
• You want to stay in your home as long as possible instead of going to a nursing home or assisted-living facility

Cost of long-term care insurance

The cost of long-term care insurance is an important factor to consider. Policy premiums depend on:

• Your age when you purchase the plan, meaning every year you wait, the cost could increase
• The maximum amount your plan will cover
• What benefits are included in your plan

¹LongTermCare.gov (October 10, 2017). Web page: Costs of Care. Retrieved June 21, 2018 from https://longtermcare.acl.gov/costs-how-to-pay/costs-of-care.html

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